HalfTerm Analysis
Get the Best CD Rates
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Do you have a crystal ball? Whether you do or not, our HalfTerm Analysis Calculator can help you decide if a shortterm or longerterm CD is more beneficial.
Instructions
You Enter:
Term:  Box B should be twice Box A.
 Rate:  Enter highest rate you can find on the respective terms
 Principal:  Amount you are investing (boxes should be the same)

Everything else is calculated:
1year Earnings:  Amount of interest earned during the 1st year at the different rates.
 HalfTerm Earnings:  Amount of interest earned during the 1st term and half of the 2nd term.
 FullTerm Earnings:  Amount of interest earned during the 2nd term.
 HalfTerm Deficit:  Difference in earnings between the two rates and terms.
 HalfTerm Deficit (Annual):  Annualized difference in earnings between the two rates and terms
 BreakEven Rate:  Rate that is needed after the 1st term in order break even versus the 2nd term.

Example:
If you press calculate with our defaulted values, you will get a breakeven rate of 2.15%. In our example, we are comparing a 2year and a 4year CD. If you believe rates will be a 2.15% or higher in two years, you may not want to go with the longerterm CD. But if you don’t think rates will rise that much, you may be better off with the 4year CD.
